Harmonized System (HS) Classification Code Services

11/05/07

BureauVeritas North America has been performing services for many of the importers and exporters to countries with Pre-Shipment Inspection (PSI) Government mandated programs. This service, normally used to assist the importing country(ies) government with its revenues collection by the import duties, VAT and other taxation methods is only applied to those items requiring inspection. (As dictated by the import regulations of each particular country)

Seldom was the Classification Services used by importers or exporters for items other than those covered by the PSI program. This then left the importers without support to ensure that the correct HS number is applied to ALL the imported goods.

As an importer or exporter, you are the entity that is held accountable and responsible by the authorities of the exporting and /or importing country’s government, to declare that the Harmonized Code (HS) is correct and true to the goods described.

Improper classification can lead to significant monetary fines and penalties, Civil and Criminal Charges and further delays in the shipment clearance. Additionally your consignment can be seized by the exporting or importing country’s Customs Authority with no recourse to retrieve.

Bureau Veritas / BIVAC North America Classification Services can be of valuable assistance to you

Regardless of the country that your shipments are destined to, Bureau Veritas can be your Classifications Solution Partner. With more than 25 years of experience with over 40 importing countries and technical staff dedicated to providing this service inover 140 countries, Bureau Veritas can assist you in arriving at the most technically sound HS classification opinion.

All of the imports and export codes used by the United States are based on the Harmonized System (HS). The HS assigns 6-digit codes for general categories. Countries which use the HS are allowed to define commodities at a more detailed level than 6-digits, but all definitions must be within that 6-digit framework. The U.S.defines products using 10-digit HS codes. Exports codes (which the U.S.calls Schedule B) are administered by the U.S. Census Bureau. Import codes are administered by the U.S. International Trade Commission (USITC).

The General Rules of Interpretation of the Harmonized System and provisions found throughout the Harmonized Commodity Description and Coding System Explanatory Notes (also known as Explanatory Notes or ENs for short), as published by theWorld Customs Organization (WCO) are the basis of the opinion formed by the technical classification experts at Bureau Veritas / BIVAC NA. In addition our experts have access to the World Customs Organization Classification Opinions.

In the USA, The Customs Modernization Act of 1993 shifted responsibility for classifying merchandise and assessing its value -- two procedures that help determine the duty liablity-- from the Customs Service to the importer. That shift has brought the United States Treasury a $96 million increase in duty revenue since the inception of the compliance assessment program in 1996. Here's how it happened:

Among the Modernisation Act's provisions is a new standard for importers, called "reasonable care." Under this new standard, importers are required to provide Customs with accurate, timely data about their imports. From reasonable care is a procedure called "prior disclosure", which is a company's voluntary admission of error in classifying or valuing merchandise. That $96 million inincreased duty revenues that Customs collected for the U.S. Treasury came from more than 250 companies involved in importing -- companies that have come forward since the Mod Act was passed to acknowledge their mistakes. (http://www.cbp.gov/custoday/mar2000/comply.htm)

Do you know all the rules and regulations of the importing country that your goods are going to? Bureau Veritas / BIVAC North America knows.

We invite you to take advantage of this service and join the many other exporters and importers that are already using BV as their Classifications Solution Partner.